It’s one thing that everyone in the office clearly knows and understands but a majority still fail to execute. Saving money from your paycheck is not rocket science but a majority of employees at the end of the day are unable to put something aside for the future.
Well, a lot of factors come into play. Sometimes the hardest thing about saving money is just getting started. We have mentioned this before.
The truth is, you don’t need everything to magically line up perfectly before you start saving money.
Statistics say most people spend more money when they have more money.
As income goes up, the standard of living of a person also rises. The ‘wants’ stealthily transform into ‘needs’, and items that once used to be luxuries morph into necessities. This mindset poses a problem, a big problem a reason why many on a paycheck are always broke.
The truth is, saving money from your salary requires a lot of discipline and sincerity.
Below are simple ways you can hack saving from your paycheck.
1. Pay off debt
Before anything, start by clearing your loans and debts.
If you have taken a student loan or have a debt of any kind, your first priority should be to pay it up. Dig yourself out of that hole first before anything else.
2. Save money automatically
By now it should be clear that you are not disciplined enough to follow through in the saving process therefore you should be thinking of other means that will force you into saving.
Try automatic deductions.
Set up your bank account to automatically transfer funds from your checking account into a savings account every month. If that sounds scary to you, you can also set up your direct deposit to automatically transfer 10% of each paycheck into your savings account.
3. Budget with envelopes
Budget with cash and envelopes If you are having trouble with overspending, try the envelope budget system where you use a set amount of cash for most spending. And once the cash is gone, it’s gone that’s the good thing about this method.
4. Find ways to cut spending
If you can’t save as much as you’d like, it might be time to cut back on expenses. Identify nonessentials, such as entertainment and dining out, that you can spend less on.
Look for ways to save on your fixed monthly expenses, such as your car insurance or cell phone plan, as well.
5. Review financial goals
While it is important to set financial goals to help people save money, reviewing them regularly is equally important.
Reviewing goals and contributions regularly will help your employees to be on top of it. If there are circumstances in which the expenditure appears to be more rather than savings then the financial goals can be modified and initiatives can be taken for increasing savings.